Vantage Prime through its Australian subsidiary Vantage Global Prime will no longer service non-Australian traders, the brokerage group announced in an e-mail to clients on Monday, advising everyone affected by the decision, to open a new trading account with the international arm of Vantage Prime, which is registered and regulated on the Cayman Islands.
The decision was prompted by some new regulatory requirements imposed by the Australian Securities and Investments Commission (ASIC), which already forced IFGM to start refunding non Australian clients and to close their accounts.
“In light of recent regulatory announcements, Vantage Global Prime….will no longer be providing financial services to clients outside of Australia,” Vantage Prime said in its e-mail.
Since the European Securities and Markets Authority (ESMA) caped the maximum leverage allowed with forex transactions on the European market at 30:1 in August 2018, many traders flocked to brokers, regulated by ASIC in Australia, which are both reliable and still offer leverage as high as 500:1.
Now because of the regulatory pressure both from Europe and the authorities in Australia that trend is about to cease.
In April the Australian parliament passed new legislation, according which companies providing services to clients outside of Australia could be breaking the law. The new legislation will be fully implemented by the end of June.